Current:Home > FinanceAverage rate on a 30-year mortgage in the US rises for 6th straight week -Wealth Evolution Experts
Average rate on a 30-year mortgage in the US rises for 6th straight week
View
Date:2025-04-13 05:52:21
The average rate on a 30-year mortgage in the U.S. rose for the sixth straight week, returning to its highest level since early July.
The rate ticked up to 6.79% from 6.72% last week, mortgage buyer Freddie Mac said Thursday. That’s still down from a year ago, when the rate averaged 7.5%.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also edged higher this week. The average rate rose to 6% from 5.99% last week. A year ago, it averaged 6.81%, Freddie Mac said.
When mortgage rates increase they can add hundreds of dollars a month in costs for borrowers, reducing homebuyers’ purchasing power at a time when home prices remain near all-time highs, even though the housing market remains in a sales slump going back to 2022.
Mortgage rates are influenced by several factors, including the yield on U.S. 10-year Treasury bonds, which lenders use as a guide to price home loans. Bond yields have been rising following encouraging reports on inflation and the economy.
This week, bond yields surged on expectations that President-elect Donald Trump’s plans for higher tariffs, lower tax rates and lighter regulation could lead to bigger economic growth, inflation and U.S. government debt.
The yield on the 10-year Treasury was at 4.36% at midday Thursday. It was at 3.62% as recently as mid-September.
The average rate on a 30-year home loan hasn’t been this high since July 11, when it was 6.89%. In late September, the average rate got as low as 6.08% — its lowest level in two years — following the Federal Reserve’s decision to cut its main interest rate for the first time in more than four years.
While the central bank doesn’t set mortgage rates, its policy pivot cleared a path for mortgage rates to generally go lower.
“While we still expect mortgage rates to stabilize by the end of the year, they will likely be at a higher level than markets were initially expecting prior to election week,” said Ralph McLaughlin, senior economist at Realtor.com.
The recent uptick in mortgage rates has discouraged some would-be home shoppers. Mortgage applications fell last week for the sixth week in a row, sliding 10.8% on a seasonally adjusted basis from the prior week, according to the Mortgage Bankers Association.
Applications for loans to refinance a mortgage fell 19%, though they were still 48% higher than in the same week last year, when rates were higher.
“Rates and borrower demand will likely remain volatile in the coming weeks as financial markets digest both the election results and the Fed’s upcoming monetary policy decisions,” said MBA CEO Bob Broeksmit.
veryGood! (36887)
Related
- Tony Hawk drops in on Paris skateboarding and pushes for more styles of sport in LA 2028
- No injuries when small plane lands in sprawling park in middle of Hawaii’s Waikiki tourist mecca
- Columbia University president to testify in Congress on college conflicts over Israel-Hamas war
- Noah Eagle picked by NBC as play-by-play voice for basketball at the Paris Olympics
- New Orleans mayor’s former bodyguard making first court appearance after July indictment
- Bond denied for 4 ‘God’s Misfits’ defendants in the killing of 2 Kansas women
- Two best friends are $1 million richer after winning the Powerball prize in New Jersey
- Jimmy John's selling Deliciously Dope Dime Bag to celebrate 4/20. How much is it?
- Former Milwaukee hotel workers charged with murder after video shows them holding down Black man
- Stock market today: Asian benchmarks are mixed while US seems committed to current rates
Ranking
- 'No Good Deed': Who's the killer in the Netflix comedy? And will there be a Season 2?
- Brittany Mahomes Shares Fiery Reaction to Patrick Mahomes’ Latest Achievement
- 'Golden Bachelor' Gerry Turner, Theresa Nist divorce news shocks, but don't let it get to you
- Howard University student killed in campus crash, reports say faculty member was speeding
- Off the Grid: Sally breaks down USA TODAY's daily crossword puzzle, Hi Hi!
- Taylor Swift announces 'Tortured Poets' music video and highlights 2 o'clock
- Olympic Sprinter Gabby Thomas Reveals Why Strict Covid Policies Made Her Toyko Experience More Fun
- Travis Kelce Details His and Taylor Swift’s Enchanted Coachella Date Night
Recommendation
2024 Olympics: Gymnast Ana Barbosu Taking Social Media Break After Scoring Controversy
A woman who accused Trevor Bauer of sex assault is now charged with defrauding ex-MLB player
Omaha teacher accused of sex crime is spouse of civilian Defense Department worker
Man arrested after 3 shot to death in central Indiana apartment complex
Which apps offer encrypted messaging? How to switch and what to know after feds’ warning
Olivia Munn Details Medically Induced Menopause After “Terrifying” Breast Cancer Journey
Matthew Perry hailed for '17 Again' comedy chops: 'He'd figure out a scene down to the atoms'
Jason Kelce lost his Super Bowl ring in a pool of chili at 'New Heights' show